INDT WACC - Weighted Average Cost of Capital
The WACC of Indus Realty Trust Inc (INDT) is 8.0%.
| Range | Selected | |
| Cost of equity | 5.6% - 8.4% | 7% |
| Tax rate | 3.7% - 14.4% | 9.05% |
| Cost of debt | 4.0% - 23.9% | 13.95% |
| WACC | 5.3% - 10.8% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.38 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 8.4% |
| Tax rate | 3.7% | 14.4% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 23.9% |
| After-tax WACC | 5.3% | 10.8% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INDT | Indus Realty Trust Inc | 0.25 | 0.46 | 0.37 |
| ARL | American Realty Investors Inc | 0.8 | 1.18 | 0.68 |
| FRPH | FRP Holdings Inc | 0.35 | 0.47 | 0.36 |
| GYRO | Gyrodyne LLC | 0.6 | 0.03 | 0.02 |
| HOOB | Holobeam Inc | 1.09 | 0.11 | 0.05 |
| LMRK | Landmark Infrastructure Partners LP | 1.18 | 1 | 0.47 |
| MAYS | J.W. Mays Inc | 0.05 | -0.16 | -0.16 |
| NEN | New England Realty Associates LP | 1.58 | -0.2 | -0.08 |
| TCI | Transcontinental Realty Investors Inc | 0.49 | 0.56 | 0.38 |
| UK | Ucommune International Ltd | 18.9 | -0.12 | -0.01 |
| Low | High | |
| Unlevered beta | 0.04 | 0.36 |
| Relevered beta | 0.07 | 0.45 |
| Adjusted relevered beta | 0.38 | 0.63 |
INDT's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for INDT:
cost_of_equity (7.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.38) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.